In a competitive market, when price is below the equilibrium price, there will be pressure for the price to:
A) fall.
B) stay the same.
C) rise.
D) change only if demand and/or supply change.
Ans: C) rise.
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Since the end of World War II, the U.S. price level has: a. increased tenfold
b. increased by an average of 10 percent each year. c. increased and decreased with equal regularity, leaving the price level almost constant. d. increased by 50 percent. e. doubled.
What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?
A. $325 B. $5,500 C. $1,175 D. $2,750
In a perfectly competitive market, the market demand curve is ________ , while an individual firm's demand curve is ________
a. downward-sloping; horizontal. b. downward-sloping but relatively flat; downward-sloping but relatively steep. c. horizontal; downward-sloping. d. horizontal; vertical
A year's tuition at a state university cost $250 in 1972 when the CPI equaled 0.418. The cost of a year's tuition at the same state university cost $8,000 in 2016 when the CPI equaled 2.40. The real cost of tuition between 1972 and 2016:
A. may have either increased or decreased. B. remained constant. C. increased. D. decreased.